Just as surprising, in the press release announcing the
resignation, Buffett included a long discussion of some stock
trades Sokol made in a company that Berkshire Hathaway just
bought. The fact that this discussion is included suggests that
some people may think Sokol committed insider trading.

In a press release, Buffett says this, which at first glance is
contradictory.

"I had not asked for his resignation, and it came as a surprise
to me. Twice before, most recently two or so years ago, Dave had
talked to me of resigning."

But the most interesting part of the press release concerns
Lubrizol -- the company Berkshire Hathaway just purchased for $9
billion. The fact that Buffett brought this topic up, and
then described it in such detail, suggests that someone has
raised questions about Sokol's trading in Lubrizol, perhaps the
SEC.

Shortly before I left for Asia on March 19, I learned that Dave
first purchased 2,300 shares of Lubrizol on December 14, which he
then sold on December 21. Subsequently, on January 5, 6 and 7, he
bought 96,060 shares pursuant to a 100,000-share order he had
placed with a $104 per share limit price.

Dave’s purchases were made before he had discussed Lubrizol with
me and with no knowledge of how I might react to his idea. In
addition, of course, he did not know what Lubrizol’s reaction
would be if I developed an interest. Furthermore, he knew he
would have no voice in Berkshire’s decision once he suggested the
idea; it would be up to me and Charlie Munger, subject to
ratification by the Berkshire Board of which Dave is not a
member.

As late as January 24, I sent Dave a short note indicating my
skepticism about making an offer for Lubrizol and my preference
for another substantial acquisition for which MidAmerican had
made a bid. Only after Dave reported on the January 25 dinner
conversation with James Hambrick did I get interested in the
acquisition of Lubrizol.

Neither Dave nor I feel his Lubrizol purchases were in any way
unlawful. He has told me that they were not a factor in his
decision to resign.

Sokol has been described as Buffett's
"Mr. Fix-It", and was "the top pick of most Buffett-watchers"
to succeed the Oracle. In the
forward to Sokol's book, Buffett wrote: "He brings the
business equivalent of Ted Williams' .406 batting average to the
field of business management."

Sokol was born and lives in Omaha, Nebraska -- same as the
Berkshire chief, and owns (with two others) a 19% stake in
MidAmerican and was therefore a "classic
Berkshire manager: he works because he wants to work not
because he has to."

Now that Sokol is gone, Greg Abel, who is President and CEO of
MidAmerican Holding Company, will become its Chairman, and Jordan
Hansell, who is President of NetJets, will become its Chairman
and CEO.

Here's the press release from
Buffett:

This press release will be unusual. First, I will write it
almost as if it were a letter. Second, it will contain two sets
of facts, both about Dave Sokol, Chairman of several Berkshire
subsidiaries.

Late in the day on March 28, I received a letter of
resignation from Dave, delivered by his assistant. His reasons
were as follows:

“As I have mentioned to you in the past, it is my goal to
utilize the time remaining in my career to invest my family’s
resources in such a way as to create enduring equity value and
hopefully an enterprise which will provide opportunity for my
descendents and funding for my philanthropic interests. I have no
more detailed plan than this because my obligations from
Berkshire Hathaway have been my first and only business
priority.”

I had not asked for his resignation, and it came as a
surprise to me. Twice before, most recently two or so years ago,
Dave had talked to me of resigning. In each case he had given me
the same reasons that he laid out in his Monday letter. Both
times, I and other Board members persuaded him to stay. Berkshire
is far more valuable today because we were successful in those
efforts.

Dave’s contributions have been extraordinary. At MidAmerican,
he and Greg Abel have delivered the best performance of any
managers in the public utility field. At NetJets, Dave resurrected an operation that was
destined for bankruptcy, absent Berkshire’s deep pockets. He has
been of enormous help in the operation of Johns Manville, where
he installed new management some years ago and oversaw major
change.

Finally, Dave brought the idea for purchasing Lubrizol to me
on either January 14 or 15. Initially, I was unimpressed, but
after his report of a January 25 talk with its CEO, James
Hambrick, I quickly warmed to the idea. Though the offer to
purchase was entirely my decision, supported by Berkshire’s Board
on March 13, it would not have occurred without Dave’s early
efforts.

That brings us to our second set of facts. In our first talk
about Lubrizol, Dave mentioned that he owned stock in the
company. It was a passing remark and I did not ask him about the
date of his purchase or the extent of his holdings.

Shortly before I left for Asia on March 19, I learned that
Dave first purchased 2,300 shares of Lubrizol on December 14,
which he then sold on December 21. Subsequently, on January 5, 6
and 7, he bought 96,060 shares pursuant to a 100,000-share order
he had placed with a $104 per share limit price.

Dave’s purchases were made before he had discussed Lubrizol
with me and with no knowledge of how I might react to his idea.
In addition, of course, he did not know what Lubrizol’s reaction
would be if I developed an interest. Furthermore, he knew he
would have no voice in Berkshire’s decision once he suggested the
idea; it would be up to me and Charlie Munger, subject to
ratification by the Berkshire Board of which Dave is not a
member.

As late as January 24, I sent Dave a short note indicating my
skepticism about making an offer for Lubrizol and my preference
for another substantial acquisition for which MidAmerican had
made a bid. Only after Dave reported on the January 25 dinner
conversation with James Hambrick did I get interested in the
acquisition of Lubrizol.

Neither Dave nor I feel his Lubrizol purchases were in any
way unlawful. He has told me that they were not a factor in his
decision to resign.

Dave’s letter was a total surprise to me, despite the two
earlier resignation talks. I had spoken with him the previous day
about various operating matters and received no hint of his
intention to resign. This time, however, I did not attempt to
talk him out of his decision and accepted his
resignation.

Effective with Dave’s resignation, Greg Abel, presently
President and CEO of MidAmerican Holding Company, will become its
Chairman; Todd Raba, President and CEO of Johns Manville, will
become its Chairman; and Jordan Hansell, President of NetJets,
will become its Chairman and CEO.

I have held back nothing in this statement. Therefore, if
questioned about this matter in the future, I will simply refer
the questioner back to this release.